Housing market remains stable in May

A file image of a house for sale sign. (Source: Getty Images)

The London St. Thomas Association of Realtors (LSTAR) says the local housing market continued its steady streak in May with 774 homes exchanging hands. That’s up from 710 in April.

According to LSTAR, the housing supply showed signs of market stabilization. Year to date, STAR says sales are outpacing 2023 by 1.8 per sent, or 3,161 total sales.

“We continue to see the trend of more new listings coming on the market, which explains the healthy level of housing stock across LSTAR’s region,” said 2024 LSTAR Chair Kathy Amess. “In May, there were 1,563 new listings, slightly up from the 1,425 new listings in April, with an overall sales-to-new listing ratio of 49.5 per cent. According to the Canadian Real Estate Association (CREA), a ratio between 40% and 60% is generally consistent with a balanced market.”

The average sales price was $660,430, down 2.8% compared to May 2023. However, that number is up slightly from the $656,037 average sales price recorded in April.

“Although the May data indicates a stable marketplace, it’s important to note every home transaction is different based on a multitude of factors,” Amess said. “LSTAR is keeping a close eye on the Bank of Canada’s next announcement, which is scheduled to happen on June 5. Whatever it decides will impact activity over the summer season.”